Transportation inefficiency and rising costs are the two key challenges the European road transport industry is tackling right now.
A contributory factor is that many road freight trips are poorly managed by manufacturers' logistics functions or their transport partners, leading to half-empty outbound and/or empty return truck movements over considerable distances. Across Europe, the annual cost of transport inefficiency is estimated to be EUR75 billion.
Transport is now the dominant logistics cost, having increased as a proportion of total spend from 33% in 1987 to 55% in 2004, according to a recent Accenture report
Within Europe, the following factors are also affecting transport users and operators:
- fuel costs have increased from US$25 to US$60 a barrel over the past five years. Fuel now makes up 20% of transport costs
- legislation. The European Union (EU) Working Time Directive limits drivers' hours to 48 a week, which has implications for driver flexibility, deployment efficiency and cost
- road tolls and congestion charging. In many European nations (eg, Germany) road tolls are rising dramatically. In central London, congestion charging has been introduced
- lack of investment in trunk roads and motorways has led to increased road works, congestion and delays.
Distribution Logistics Cost Reduction "Never a better time than Now"
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Customer deliveries and associated
distribution costs keep rising, fuel,
drivers hours costs to name a few just
keep going up and up. Customer do not want
to pay more for the products, therefore
margins are reducing.
Our cost reduction programme is tailored
to both In-house fleets and businesses
using 3pl contractors the issue are the
same.
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Some Questions you may be asking? |
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Is our routing & scheduling optimised? |
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Do we have the right number, types & mix of vehicles? |
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Are our depot's and our 3pl providers depot's in the best location? |
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Are we getting the best cost & service from our 3pl contractors? |
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What can we do our volumes per drop are reducing, and the numbers of times a customer wants a delivery is increasing? |
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The fact is that many businesses who use 3pl contractors never look at these factors, take it from us, the contractor will have his own in-efficiencies, and you will be paying for them in your exiting rates.
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In-house fleets suffer from the same issues.
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Supply Chain Logistics
Consulting
can reduce customer delivery costs for businesses using:
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In House Fleets.
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3pl Contractors.
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Pallet Networks.
How:-
We use a combination of our logistics experience and business analysis tools to clearly show you the cost reduction opportunities that exist in your business:
Benefits to you and your Customers:-
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Reduce transport cost by up to 20%.
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Stabilised warehouse work flows.
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Improve customer service.
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Reduce delivery lead times.
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Be more responsive to customer demands .
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Improve strategic decision making
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Underpin strategic growth objectives
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Make Back-loading easier to achieve.
Download our Cost Savings
Opportunity Assessment
Programme:-
Transport & Distribution
Cost Reduction Review
Contact us for a
discussion about cost
reduction in your business.
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Supply Chain Logistics Consulting Ltd - The Chimes, 1 Park Rd, Congleton, Cheshire. CW12-1DS -01260-276469
Mobile 0777-1973782 |
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